[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2983 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2983

To amend the Internal Revenue Code of 1986 to provide middle class tax 
relief, impose a surtax for families with incomes over $1,000,000, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 10, 2007

  Mr. Weiner introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide middle class tax 
relief, impose a surtax for families with incomes over $1,000,000, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Middle Class Tax 
Relief Act of 2007''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
             TITLE I--TAX RELIEF FOR MIDDLE CLASS FAMILIES

Sec. 101. Middle class families tax relief credits.
Sec. 102. Double the child tax credit for middle class families.
Sec. 103. Eliminate the middle class surcharge.
       TITLE II--SURTAX FOR FAMILIES WITH INCOMES OVER $1 MILLION

Sec. 201. Surtax for families with incomes over $1 million.

             TITLE I--TAX RELIEF FOR MIDDLE CLASS FAMILIES

SEC. 101. MIDDLE CLASS FAMILIES TAX RELIEF CREDITS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting before section 26 the 
following new section:

``SEC. 25E. MIDDLE CLASS FAMILIES TAX RELIEF CREDIT.

    ``(a)  10 Percent Tax Reduction for the Middle Class.--
            ``(1) In general.--In the case of any natural person, there 
        shall be allowed as a credit against the tax imposed by this 
        chapter for the taxable year an amount equal to 10 percent of 
        the amount of such tax.
            ``(2) Income limitation.--The amount allowable as a credit 
        under paragraph (1) for any taxable year shall be reduced (but 
        not below zero) by an amount which bears the same ratio to the 
        amount so allowable (determined without regard to this 
        paragraph) as--
                    ``(A) the amount (if any) by which the taxpayer's 
                adjusted gross income exceeds $75,000 ($150,000 in the 
                case of a joint return), bears to
                    ``(B) $5,000 ($10,000 in the case of a joint 
                return).
    ``(b) Zero Tax Bracket for the Poor.--
            ``(1) In general.--In the case of any natural person, there 
        shall be allowed as a credit against the tax imposed by this 
        chapter for the taxable year an amount equal to the excess, if 
        any, of--
                    ``(A) the sum of the taxpayer's regular tax 
                liability for the taxable year and the tax imposed by 
                section 55(a) for the taxable year, over
                    ``(B) the sum of the credits allowed under this 
                part (other than this subsection) for the taxable year.
            ``(2) Income limitation.--The amount allowable as a credit 
        under paragraph (1) for any taxable year shall be reduced (but 
        not below zero) by an amount which bears the same ratio to the 
        amount so allowable (determined without regard to this 
        paragraph) as--
                    ``(A) the amount (if any) by which the taxpayer's 
                adjusted gross income exceeds $12,500 ($25,000 in the 
                case of a joint return), bears to
                    ``(B) $2,500 ($5,000 in the case of a joint 
                return).''.
    (b) Clerical Amendment.--The table of sections of subpart A of part 
IV of subchapter A of chapter 1 of such Code is amended by inserting 
before the item relating to section 26 the following new item:

``Sec. 25E. Middle class families tax relief credits.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 102. DOUBLE THE CHILD TAX CREDIT FOR MIDDLE CLASS FAMILIES.

    (a) In General.--Subsection (a) of section 24 of the Internal 
Revenue Code of 1986 (relating to child tax credit) is amended to read 
as follows:
    ``(a) Allowance of Credit.--
            ``(1) In general.--There shall be allowed as a credit 
        against the tax imposed by this chapter for the taxable year 
        with respect to each qualifying child of the taxpayer an amount 
        equal to the sum of--
                    ``(A) the basic credit for the taxable year, plus
                    ``(B) the additional credit for the taxable year.
            ``(2) Basic credit.--For purposes of this section, the term 
        `basic credit' means--
                    ``(A) $1,000 in the case of any taxable year 
                beginning before January 1, 2011, and
                    ``(B) $500 in the case of any other taxable year.
            ``(3) Additional credit.--For purposes of this section, the 
        term `additional credit' means--
                    ``(A) $1,000 in the case of any taxable year 
                beginning before January 1, 2011, and
                    ``(B) $500 in the case of any other taxable 
                year.''.
    (b) Limitation on Additional Credit Based on Adjusted Gross 
Income.--Subsection (b) of section 24 of such Code is amended by adding 
at the end the following new paragraphs:
            ``(4) Limitation on additional credit based on adjusted 
        gross income.--The amount of the additional credit determined 
        under subsection (a)(3) shall be reduced (but not below zero) 
        by an amount which bears the same ratio to such amount 
        (determined without regard to this paragraph) as--
                    ``(A) the amount (if any) by which the taxpayer's 
                adjusted gross income exceeds $75,000 ($150,000 in the 
                case of a joint return), bears to
                    ``(B) $5,000 ($10,000 in the case of a joint 
                return).''.
    (c) Conforming Amendments.--Paragraph (1) of section 24(b) of such 
Code is amended--
            (1) by striking ``the credit allowable under subsection 
        (a)'' and inserting ``the basic credit determined under 
        subsection (a)(2)'', and
            (2) by inserting ``on basic credit'' after ``Limitation'' 
        in the heading thereof.
    (d) Coordination With EGTRRA Sunset.--Section 901 of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 shall not apply to the 
amendment made by section 201(a) of such Act.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 103. ELIMINATE THE MIDDLE CLASS SURCHARGE.

    (a) In General.--Section 55 of the Internal Revenue Code of 1986 
(relating to alternative minimum tax imposed) is amended by adding at 
the end the following new subsection:
    ``(f) Exemption for Individuals for Taxable Years Beginning in 
2008.--For any taxable year beginning in 2008, in the case of an 
individual--
            ``(1) In general.--The tentative minimum tax of the 
        taxpayer shall be zero if the adjusted gross income of the 
        taxpayer (as determined for purposes of the regular tax) is 
        equal to or less than the threshold amount.
            ``(2) Phasein of liability above exemption level.--In the 
        case of a taxpayer whose adjusted gross income exceeds the 
        threshold amount but does not exceed $112,500 ($225,000 in the 
        case of a joint return), the tax imposed by subsection (a) 
        shall be the amount which bears the same ratio to such tax 
        (determined without regard to this subsection) as--
                    ``(A) the excess of--
                            ``(i) the adjusted gross income of the 
                        taxpayer (as determined for purposes of the 
                        regular tax), over
                            ``(ii) the threshold amount, bears to
                    ``(B) $12,500 ($25,000 in the case of a joint 
                return).
            ``(3) Threshold amount.--For purposes of this paragraph, 
        the term `threshold amount' means $100,000 ($200,000 in the 
        case of a joint return).
            ``(4) Estates and trusts.--This subsection shall not apply 
        to any estate or trust.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007.

       TITLE II--SURTAX FOR FAMILIES WITH INCOMES OVER $1 MILLION

SEC. 201. SURTAX FOR FAMILIES WITH INCOMES OVER $1 MILLION.

    (a) General Rule.--Section 1 of the Internal Revenue Code of 1986 
(relating to imposition of tax on individuals) is amended by adding at 
the end the following new subsection:
    ``(j) Surtax for Families With Incomes Over $1,000,000.--
            ``(1) In general.--If the adjusted gross income of a 
        taxpayer exceeds $500,000 ($1,000,000, in the case of a joint 
        return), the tax imposed by this section (determined without 
        regard to this subsection) shall be increased by an amount 
        determined in accordance with the following tables:
                    ``(A) Joint returns.--In the case of a joint 
                return:

``If taxable income is:             The tax is:
    Over $1,000,000 but not over 
        $1,000,000,000.
                                        7% of the excess over 
                                                $1,000,000
    Over $1,000,000,000............
                                        $69,930,000, plus 10% of the 
                                                excess over 
                                                $1,000,000,000
                    ``(B) Other returns.--In the case of any other 
                return:

``If taxable income is:             The tax is:
    Over $500,000 but not over 
        $500,000,000.
                                        7% of the excess over $500,000
    Over $500,000,000..............
                                        $34,965,000, plus 10% of the 
                                                excess over 
                                                $500,000,000
            ``(2) Tax not to apply to estates and trusts.--This 
        subsection shall not apply to an estate or trust.
            ``(3) Special rule.--For purposes of section 55, the amount 
        of the regular tax shall be determined without regard to this 
        subsection.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
    (c) Section 15 Not To Apply.--The amendment made by subsection (a) 
shall not be treated as a change in a rate of tax for purposes of 
section 15 of the Internal Revenue Code of 1986.
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